LME sued for $96 million by hedge funds for canceling nickel trades (updated)

Flow Traders

06/03/2023 14:58

(Adds details on lawsuit)
       March 6 (Reuters) - 
    A group of hedge funds has filed a lawsuit against London
Metal Exchange (LME) and LME Clear Ltd for canceling billions of
dollars worth of trades in nickel contracts, parent company Hong
Kong Exchanges and Clearing  0388.HK  said on Monday. 
  
    AQR Capital Management, DRW Commodities, Flow Traders
 FLOW.AS , Capstone Investment Advisors and Winton Capital
Management Ltd are seeking damages of 80 million pounds ($96
million) for alleged losses incurred due to LME's decision to
cancel trading in nickel contracts in March last year, HKEX
said.
        In December, a high court judge 
    dismissed
     a case against LME brought by AQR Capital Management and
others that demanded phone call transcripts and meeting notes
about the exchange's decision to cancel nickel trades.
  
        "The LME and LME Clear management are of the view that
the claim is without merit," HKEX said in a statement. 
  
    An extreme price spike in nickel trading  CMNI3  led the
world's oldest and largest forum for metals to cancel all nickel
trades and suspend trading for the first time since 1988.     
    LME also faces lawsuits from U.S. hedge fund Elliott
Associates and Jane Street Global Trading, which are seeking
damages of $456 million and $15.3 million, respectively.
        LME is being 
    probed
     by UK's Financial Conduct Authority (FCA) for possible
misconduct.
  
            
($1 = 0.8333 pounds)

 (Reporting by Harish Sridharan in Bengaluru; Editing by Anil
D'Silva)
 ((Harish.Sridharan@thomsonreuters.com; Twitter: https://twitter.com/damnit_saladin;))